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Public Blockchain projects lack funding, co-founder of Ethereum has ideas

Vitalik Buterin, the co-founder of Ethereum, has recently openly criticized the lack of funding for open-source public projects. At a time when ICOs are collecting more money than traditional venture capital, alternative funding models for community-contributing projects are needed

Public Blockchains like Bitcoin, Ethereum and Litecoin are different from other Blockchains. in that their coins can be exploited by the general public. Other blockchains, usually those of newer startups, do not have cash coins.

Their coins are issued during ICOs that can sell very quickly. In such cases, some investors might end up owning the majority of the coins. It is easy to finance startups through ICOs, but not as easy to finance public projects to improve Blockchain

A fundamental problem

The problem with the market system current is that arbitrarily set by companies and investors have no room for maneuver. This leads to either massive initial purchases from pockets of investors, ICO stoppage when values ​​are warranted, or the possibility of fraud when companies fail to meet expectations. investors.

Buterin, hopes that the popularity of ICO will find its way into public projects, while offering investors new ways to have some control over the symbolic valuation. While developers are currently making sacrifices for the greater good of the Blockchain community, perhaps there is a better way forward

ICO Balance Act

Buterin recently co-published a paper with TrueBit founder Jason Teusch, in which industry leaders argue that the issue of ICO evaluation makes sense – ICOs allow everything the world to buy coins, and coins are available at fixed rate

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If coins are capped, not everyone has the opportunity to buy because the sale can end in a few seconds. However, if the coins are not capped and everyone can buy, the total number of chips can simply skyrocket, devaluing the coins considerably.

The solution to this puzzle is not simple. driven but exclusive, while uncapped sales appear greedy, but open. However, tech gurus have designed a simple but elegant system to handle these problems.

The team explains that moving to an "interactive parts offering" would provide a solution that would allow the market for a particular piece to develop. contract according to the true value. In such a system, buyers can make and withdraw offers for a certain amount of chips at a certain value.

By offering buyers flexibility that diminishes as ICO's closing date approaches, interactive offers work at the same time to entice buyers to buy and stay in proposals of real value.

Open open source as a win-win

Another option is to turn to specialized platforms in creating open source peer-to-peer networks. These platforms connect end users who see or encounter a bug in the Blockchain that they have encountered. On the platform, users can rate the problem and post a monetary reward for a fix.

Any developer on the platform can offer a solution to the various problems that have been recorded. The most appropriate solution is chosen, and funds are transferred to the appropriate developer. But what is there for the users who offer the reward? First of all, they experience, with all the others, the speed and finesse of a debugged Blockchain. Similar to when a local government repairs a highway, all drivers benefit from smoother roads.

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Second, platforms can be used to enhance existing blockchain systems. Users can request features that they want to see, not just bugs that they want to fix. As more people offer new features, more solutions will come up. This will encourage others to come up with their own characteristics, leading to even more resolutions. It is the gift that continues to give

Some living examples

A company focuses on the latter, building a decentralized market for open-source collaboration. The platform launches a safe way to fix bugs and create features on any project, including public projects. It does not only work with Blockchain, but with a variety of other areas. The platform will use cryptocurrencies to entice users to offer solutions to problems by giving them the opportunity to be paid for their suggestions.

Other companies are looking to do something similar in the economic space project leaders on peer-to-peer networks. For example, another project raised $ 5 million in less than a week by providing a similar P2P platform.

Contributors are able to pursue projects directly with project managers. Growth in concert economics (both freedom-seeking contributors and specialty-seeking project leaders) will continue to push solution-based platforms into the marketplace

often creates significant gaps in maintenance. The monetization of specialized projects will make work on a public project much more attractive. By encouraging open source solutions and giving project managers the freedom to seek out talent in the field of the collaborative economy, the solutions market will grow and stabilize. As the world Blockchain and ICO continues to mature, solutions must be sought for the problems that cause the most anxiety to investors.

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Solutions like those proposed by Buterin and Teusch, as well as companies seeking to encourage open source applications, will continue to advance the industry.